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Riot Games Reels Back Esports Spending

Esports is big business, but the folks behind League of Legends maybe have stepped on the gas a little too hard. According to a Reddit thread, Riot Games esports spending is looking to be scaled back as the company reportedly hasn’t broken even on their investment.

Riot’s global esports head Derrick “FearGorm” Asiedu addressed observations of future LoL events being smaller in scope, confirming that the company needs to better manage its money in order to both see a return on investment as well as help see the game’s esports efforts grow.

“We’re ok with costs continuing to be high, because we think the value esports provides to everyone who plays LoL is worth it. But we don’t want to continue to be in startup mode – we’re now a mature business and costs need to be more in line with revenue in the future. This means that we’re holding ourselves more accountable to net income targets than we have historically.

We’re a long way from breaking even (revenue minus cost equaling 0), and are trying to see if on the cost side, there are things we can cut or scale back that fans don’t care about, while continuing to invest in the areas fans do care about.”

Ultimately, the company believes that revenue increases will be more beneficial than cost decreases, with a number of investments being made such as traditional investments.

Our Thoughts

If this, ultimately, doesn’t mean that esports events for LoL are changed too much and end up still being enjoyable, then so be it. A company exists to make money after all, and making esports profitable is pretty much the point that most companies are trying to get into this whole shebang anyway.

About Chris Hughes

Chris is a literal wolf who has managed to learn how to use a computer. He enjoys cooking, roleplaying, writing, and reading those who do the same. You can find him staring at Twitter or read more of his attempt at humor at his blog, or in-game primarily on WildStar, Blade and Soul or Final Fantasy XIV.

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